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Investors.com - Surge In FHA Loans May Spur Big Losses For U.S. Taxpayers
Skyrocketing growth in loans from the Federal Housing Administration and Ginnie Mae have helped support the mortgage market — but could leave taxpayers on the hook for massive new losses.
FHA-insured loans have more than tripled from 530,000 in fiscal year 2007 to 1.7 million thus far in 2009. The Government National Mortgage Association, which securitizes FHA loans, has boosted its mortgage-related issuance to $287 billion from $85 billion.
Yet during that same period, the FHA's loan delinquency rate has climbed to 14.4% in Q2 from 12.6% two years earlier.
Adding to the concern, the FHA's fund to cover losses has dropped to a projected 3% of insured loans. That's a leverage ratio of 33-to-1, the level banking giant Bear Stearns was at before it failed.
KK, it has not all been people living beyond their means. I am for courts not letting crooked bankers who alter documents to get these loans approved and through federal programs so they have guarantees going to jail. That is not the case. SBA and FHA have been had by crooked asshole bankers. I KNOW I AM ONE THAT STOOD THERE AND SCREAMED BLOODY MURDER WHEN THEY DID IT TO ME.So ... Rod, you are for letting people who lived beyond their means off the hook to?
Veritas you are fairly close to correct for once. But still a 2% increase in the number of defaults -a number that had been stable for years - is not a good sign. And when people stop getting paid to buy cars and hoses what happens t those markets?
KK, it has not all been people living beyond their means. I am for courts not letting crooked bankers who alter documents to get these loans approved and through federal programs so they have guarantees going to jail. That is not the case. SBA and FHA have been had by crooked asshole bankers. I KNOW I AM ONE THAT STOOD THERE AND SCREAMED BLOODY MURDER WHEN THEY DID IT TO ME.So ... Rod, you are for letting people who lived beyond their means off the hook to?
I could have walked away and let SBA/the taxpayer pay for the bank's fraud. I did not. We were stripped, threatened and left to die a slow miserable financial death. NO ONE, I mean no one stopped them. When a bank can use creative accounting to ruin a valid business and then go to court and use their own sole created documents to completely finish off a little ole nobody like me and a nobody like Rod with the courts assisting and compounding that fraud, what do you think they are doing and have been doing on a daily basis for years?
It is solely up to those banks to determine if a person is a viable risk. They have the authority to make unilateral decisions. They are supposed to follow guidelines, they do not. When a creditor fails the bank collects it's losses from the taxpayer. When the bank made a bad decision or if they altered docs to make that loan taxpayers foot the bill. "Standard banking practice" are the exact words used by the bank attorney at the Iowa Court of Appeals. It is standard banking practices to alter documents, overcharge accounts and then threaten someone if/when they refuse to sign off that they will not sue that bank, their employees and their CEO's. Fraud was detailed and exact in my filing, it was detailed in the banks documents and the bankers testimony, the courts tossed it and ignored fraud by the bank. That is the way it works and I do not agree with it in any manner whatsoever. LET THEM FAIL.
Normally one would assume that a bank/bankers would be charged with fraud at the very least for altering documents. It is after all against the law. They have not been charging these guys in those banks for their erroneous papers, erroneous 1099's, charges and/or their erroneous balance sheets that were created so these creeps could and can strip off a nice yearly salary.
If a bank loaned money on a home and altered documents what is that? If that bank overcharged an account without authorization that cost the account holder a weeks wages and then claimed that person "is a no good that simply won't pay their bills" what is that when a bank created that situation?
It all happens just exactly like I stated. I know that from personal experience. I was retired before I hit forty. We did not just pay bills a bill at a time. I paid our bills in advance from anywhere to 6 months to a year. We owed no one a dime. I had borrowed money three times from a bank. Twice for a new truck or car, paid for them in less than two years. Once I had a contract that I could not cover the payroll the second month until I got paid, the banker gave me a line of credit for five grand. It was all paid for before the mine experience.
Hold everyone responsible for their own actions but when you do you hold them all responsible bankers, lawyers, politicians, judges and the borrower included. If anyone of those commit fraud then the one who committed fraud loses. That is the way it is suppose to be. It was never the intentions of any sane person to pay crooks to steal from the public.
Investors.com - Surge In FHA Loans May Spur Big Losses For U.S. Taxpayers
Skyrocketing growth in loans from the Federal Housing Administration and Ginnie Mae have helped support the mortgage market but could leave taxpayers on the hook for massive new losses.
FHA-insured loans have more than tripled from 530,000 in fiscal year 2007 to 1.7 million thus far in 2009. The Government National Mortgage Association, which securitizes FHA loans, has boosted its mortgage-related issuance to $287 billion from $85 billion.
Yet during that same period, the FHA's loan delinquency rate has climbed to 14.4% in Q2 from 12.6% two years earlier.
Adding to the concern, the FHA's fund to cover losses has dropped to a projected 3% of insured loans. That's a leverage ratio of 33-to-1, the level banking giant Bear Stearns was at before it failed.
It seems the Federal Housing Administration is in critical condition...and is threatening to smite this recovery before it even starts. Can we afford to bailout this disaster-waiting-to-happen?
Not good.
See also:
Loan Losses Spark Concern Over FHA - WSJ.com
The Coming FHA Bail-Out | Cato @ Liberty
On the other hand, the FHA bureaucracy says there is nothing to worry about:
U.S. FHA says won't need congressional support | Markets | Markets News | Reuters
The highlights of the bank part. The banker's testimony was "someone in the bank made up those" "someone in the bank did that but I did not do it", "no (...insert my name)...never saw those". He was talking about settlement sheets and an obviously altered UCC filing. The judge in case had same last name as WF acounting (a cousin I believe he owns banks in Nebraska from what I found last fall) ceo who also happened to own the company that provided internal parts for a machine that was designed to fail from the factory. WF had shorted the loan funds within three months of the loan. I received equipment that we would later discover came from the factory designed to fail...I could go on and on with the little details but at this point I really think not to many people really give a shit. While I was filling my first road contract the equipment manufacturer's crew blew up my washplant. An attorney that got involved told me he would sue manufacturer. He failed to tell me he did worked for bank. I found that out while searching for an attorney to help, another attorney told me about the lastest case the guy had won for the bank. Made since at that point why he was telling me "The bank will get what they want", he helped them. The local sheriff stole a dozer from me then threaten to arrest me for reporting it stolen before I knew he had helped. The prosecutor two years later looked at cancelled checks and said, "Oh my god he stole that dozer!". While in court about husband's equipment they stole the one banker testified, the other banker left and came back and then started telling his attorney to get me for fraud. Of course they had obviously committed fraud, if I had committed any type fraud I would have no legal recourse. Not sure but this is what I think, someone was obviously working with someone here in the county. The county had also made up an erroneous deed on the mine land putting my name and husband's name on it (we never owned it). The county switched property from house here around, WF had mortgage on house, even though federal code says no personal property may be considered for business loan and hubby not a part of loan and I do have to say it did look like I did something wrong when county started swapping property but i did not switch property the county assessor did. If the bank could make it look like I did though it would possibly help since they committed fraud majorly. Heck they just bought the judge and the Appeals court upheld his decision even those those docs were admitted by banker to be altered, etc...fraudulent. WF also took lawsuit against manufacturer and had it dismiss. I have been told by a half a dozen attorney that is not legal but hey the courts here did it for them. There's more but that is the highlights. It is all documented. It's the banks docs that clinch the truth. They sent me an erroneous 1099 for eighty some thousand, Citi had also sent out an erroneous 1099. The local thugs that were in cahoots with the sheriff told me they were exempt. They went through our home, cupboards, personal garage and Rod's stuff in the shop, you name it they went through it. They stripped out anything they found of any value or one of the goons wanted. They took our personal trucks also. The bank did return the pickups of course mine had been brutalized a bit before Rod got them back. It would cost more than we could afford to fix it after they got done with it. Much of the equipment was destroyed that Rod would have tried to buy back at the banks auction. I was told by several attorneys it was the banks scorched earth policy. I had refused to sign off that I would not sue them. At one doc in the SBA file WF submitted had "GOURMET GRINDER" in a place where my company name should have been. That is how sure they are of themselves. One would have thought that the Appeals court would have not ruled on the fraudulent docs but they did after they threw out my filing. Without my filing the whole thing looks like it could be legit. I listed each doc that was testified by the banker to be erroneous and also showed the eighty grand they had shorted my loan from the get go. The court did rule Rod was not a party to the action, he was not on the corporate loan either but they stole everything he owned. We had spent years paying for everything. Rod was partially disabled back in 1985. His equipment made sure he could always work at the pace his disability would allow for.KK, it has not all been people living beyond their means. I am for courts not letting crooked bankers who alter documents to get these loans approved and through federal programs so they have guarantees going to jail. That is not the case. SBA and FHA have been had by crooked asshole bankers. I KNOW I AM ONE THAT STOOD THERE AND SCREAMED BLOODY MURDER WHEN THEY DID IT TO ME.So ... Rod, you are for letting people who lived beyond their means off the hook to?
I could have walked away and let SBA/the taxpayer pay for the bank's fraud. I did not. We were stripped, threatened and left to die a slow miserable financial death. NO ONE, I mean no one stopped them. When a bank can use creative accounting to ruin a valid business and then go to court and use their own sole created documents to completely finish off a little ole nobody like me and a nobody like Rod with the courts assisting and compounding that fraud, what do you think they are doing and have been doing on a daily basis for years?
It is solely up to those banks to determine if a person is a viable risk. They have the authority to make unilateral decisions. They are supposed to follow guidelines, they do not. When a creditor fails the bank collects it's losses from the taxpayer. When the bank made a bad decision or if they altered docs to make that loan taxpayers foot the bill. "Standard banking practice" are the exact words used by the bank attorney at the Iowa Court of Appeals. It is standard banking practices to alter documents, overcharge accounts and then threaten someone if/when they refuse to sign off that they will not sue that bank, their employees and their CEO's. Fraud was detailed and exact in my filing, it was detailed in the banks documents and the bankers testimony, the courts tossed it and ignored fraud by the bank. That is the way it works and I do not agree with it in any manner whatsoever. LET THEM FAIL.
Normally one would assume that a bank/bankers would be charged with fraud at the very least for altering documents. It is after all against the law. They have not been charging these guys in those banks for their erroneous papers, erroneous 1099's, charges and/or their erroneous balance sheets that were created so these creeps could and can strip off a nice yearly salary.
If a bank loaned money on a home and altered documents what is that? If that bank overcharged an account without authorization that cost the account holder a weeks wages and then claimed that person "is a no good that simply won't pay their bills" what is that when a bank created that situation?
It all happens just exactly like I stated. I know that from personal experience. I was retired before I hit forty. We did not just pay bills a bill at a time. I paid our bills in advance from anywhere to 6 months to a year. We owed no one a dime. I had borrowed money three times from a bank. Twice for a new truck or car, paid for them in less than two years. Once I had a contract that I could not cover the payroll the second month until I got paid, the banker gave me a line of credit for five grand. It was all paid for before the mine experience.
Hold everyone responsible for their own actions but when you do you hold them all responsible bankers, lawyers, politicians, judges and the borrower included. If anyone of those commit fraud then the one who committed fraud loses. That is the way it is suppose to be. It was never the intentions of any sane person to pay crooks to steal from the public.
This horrible. Is it an Iowa thing? I would like to hear more.
Sure. I was sent to them concerning this property bs around here. Had all the records there on the computer. The guy said so what. They have been making up deeds and stealing property here for ages. The seventies and eighties brought a good deal of federal funds for quit claim deeds.Geez. Sounds like you'd have to get the FBI involved. They should be involved. You should write a book.
By definition, anyone that takes out a mortgage is living beyond their means, they assumed a debt. The government and business have a keen interest in furthering this cycle though. It keeps the machine moving and the churn stable and produces taxes and monthly income. The whole tax structure is built on borrowing and not saving. You get a tax break if you borrow and are penalized for saving. But the truth is, FHA loans are not the ones that were in high default, they have a purchase ceiling. It was the non-conforming loans that were rated high when they shouldn't have been. But a mortgage is a secured loan. The FHA can and does offer foreclosed homes for sale, as does the VA. Bear Stearns had no such corporeal collateral.
I knew something was wrong in this business as far back as 99. my former next door neighbor wrote mortgages for a local co here in the metro. he and i were talking over the fence one day and he told me was doing/seeing something for the first time ever. he was writing mortgage for buyers who didn't qualify. what ???!!! that's right. for 200K or 500K homes, what ever the amount. neither of us knew what what was going on. later on I had a few beers with him and he now said were in deep shit. now what??? he said he was now writing mortgages to buyers who didn't even have a job !!!! WTF ????? he asked his boss about it and was told to shut up, say nothing and do your damned job. so I knew there was smoke somewhere and maybe a big fire was on the way;
Liberal extremists organized rent-a-mobs like ACORN to demonstrated against bankers to force them to make loans to people who were not credit worthy. Mobs of angry ACORN protesters who threatened bankers and their families. Mob violence spoke loudly, You better loan money to our constituents or you children will be harassed on their way to school. Mobs were bussed to neighborhoods of AIG executives to frighten them and make them give back their bonuses.
[URL="http://www.gopexiles.com/?p=990"]link[/URL]
Obama served as legal council to an Acorn Army which endorsed direct action against bankers. Banks faced protectors who called them racists if they denied unsecured loans to minorities. Acorn sent bus loads of protectors to bankers homes, intimidated their families and their children to force them to make bad loans. Now Obama has inspired the latest round of thug protectors to threaten AIG executives with the same protests. Anyone who is targeted by Obama will face the same brown shirt Acorn terrorism. Bankers were first and AIG was next. How long will it be before Obama sends his thug Acorn army to a neighborhood near you?
now it makes sense. rent-a-mob. and we still pays tax's to support these thugs. liberals stink like a whorehouse at low tide. always have always will. see what happens while your asleep????
I knew something was wrong in this business as far back as 99. my former next door neighbor wrote mortgages for a local co here in the metro. he and i were talking over the fence one day and he told me was doing/seeing something for the first time ever. he was writing mortgage for buyers who didn't qualify. what ???!!! that's right. for 200K or 500K homes, what ever the amount. neither of us knew what what was going on. later on I had a few beers with him and he now said were in deep shit. now what??? he said he was now writing mortgages to buyers who didn't even have a job !!!! WTF ????? he asked his boss about it and was told to shut up, say nothing and do your damned job. so I knew there was smoke somewhere and maybe a big fire was on the way;
Liberal extremists organized rent-a-mobs like ACORN to demonstrated against bankers to force them to make loans to people who were not credit worthy. Mobs of angry ACORN protesters who threatened bankers and their families. Mob violence spoke loudly, You better loan money to our constituents or you children will be harassed on their way to school. Mobs were bussed to neighborhoods of AIG executives to frighten them and make them give back their bonuses.
[URL="http://www.gopexiles.com/?p=990"]link[/URL]
Obama served as legal council to an Acorn Army which endorsed direct action against bankers. Banks faced protectors who called them racists if they denied unsecured loans to minorities. Acorn sent bus loads of protectors to bankers homes, intimidated their families and their children to force them to make bad loans. Now Obama has inspired the latest round of thug protectors to threaten AIG executives with the same protests. Anyone who is targeted by Obama will face the same brown shirt Acorn terrorism. Bankers were first and AIG was next. How long will it be before Obama sends his thug Acorn army to a neighborhood near you?
now it makes sense. rent-a-mob. and we still pays tax's to support these thugs. liberals stink like a whorehouse at low tide. always have always will. see what happens while your asleep????
That's complete BS.
